A well-structured Will is the foundation of solid estate planning, ensuring your assets are distributed according to your wishes. One of the most significant appointments within the Will is that of the Executor, who is responsible for ensuring that the terms of the Will are properly carried out, the wishes of the deceased person are followed, their estate is managed correctly, and their assets are distributed as intended. Acting as an Executor is a significant legal responsibility that requires careful consideration. While some individuals may feel confident in taking on this role, others may want to seek advice and support when carrying out this role.
Naomi Dyer, Senior Associate in our Wills and Estate Planning team, explains an Executor's role, responsibilities, and what to consider if you have been named as an Executor in a Will.
What is an Executor of a Will?
An Executor is an individual appointed in a Will to administer the deceased’s estate. Their specific responsibilities include paying any debts owned by the deceased, paying any taxes, selling any assets and dealing with all required formalities prior to distributing the estate to the deceased's intended beneficiaries.
Executors are legally required to act in the best interests of the beneficiaries whilst complying with both legal and tax regulations, including reporting the estate value to HMRC.
Who Can Be an Executor?
An Executor can be:
- A trusted individual, such as a spouse, child, family member or friend.
- A professional, such as a lawyer or an accountant.
- A beneficiary of the Will, provided they are over the age of 18.
The role of an Executor can be complex and time-consuming. Therefore, it is essential to appoint someone who is responsible, organised, and capable of handling financial matters.
What Does an Executor Do?
Executors have several key responsibilities, including:
- Locating and Securing the Will: The Executor must locate the original Will, ensuring its safekeeping.
- Identifying Assets and Liabilities: Executors must compile a comprehensive list of the deceased’s property, bank accounts, investments and pensions while also identifying any outstanding liabilities. The full value of the estate must be accurately assessed as of the date of death.
- Applying for Probate: If required, the Executor must apply for a Grant of Probate, which gives the Executor the legal authority to manage the deceased's estate.
- Settling Debts and Taxes: Before distributing assets to the beneficiaries of a Will, the Executor must first settle any outstanding debts, funeral expenses and taxes, including payment of any Inheritance Tax, Capital Gains Tax and Income Tax.
- Maintaining Records and Reporting: Throughout the administration process, the Executor must keep detailed records, and where necessary, provide accounts to the beneficiaries and relevant authorities.
- Distributing the Estate: Once any outstanding debts and taxes have been settled, the Executor must distribute the estate according to the terms of the Will.
- Handling Disputes: Executors may need to deal with disputes from creditors or family members contesting the Will.
How Much Time Does an Executor Need to Dedicate to The Role?
There is no set time for how long an Executor must dedicate to the role. However, the role of an Executor can be demanding and time-consuming. Generally speaking, the estate administration process, including the distribution of assets, can take up to one year. However, this is dependent on several factors and the actual timeframe can vary significantly depending on the complexity of the estate, family disputes, property sales and any legal issues which may arise.
What is Probate?
A Grant of Probate is an official document issued by the Court (also known as the Probate Registry), that confirms the Executor(s) named in a Will have the legal authority to administer the deceased's estate according to its terms. It is not always required for estates consisting solely or jointly held assets, as these typically pass by right of survivorship, rather than under the terms of a deceased's Will.
Can An Executor Be a Beneficiary?
Yes, an Executor can also be a beneficiary of the Will, which is common when a spouse, child, or close relative is appointed. However, they must act impartially and ensure all beneficiaries receive their entitled share. It is important to note that a beneficiary (or their spouse or civil partner) should not act as a witness when signing the Will as if they do, they will forfeit their right (or their spouse or civil partner's) to inherit from the deceased's estate.
Do You Have to Accept the Role of Executor?
If you have been named an Executor, you have a number of options available to you. If you are confident with what the role entails, you can proceed to get the Grant of Probate and take full responsibility for administering the deceased's estate.
If you are not confident with the role, it would be a good idea to get some advice about what is involved with the role. You do not have to do it alone, and it is possible to appoint a firm of solicitors to support you through the role and do various tasks on your behalf.
If being an Executor is not a role that you wish to take on, and if you have not got involved with the administration of the state in any way, you are able to renounce the role, giving up your right to be an Executor and all responsibilities this entails.
If you are named as an Executor alongside other people, you have the option to "reserve power", allowing you to step back from the day-to-day administration whilst retaining the right to step in later if required. This can be particularly useful if an Executor becomes seriously ill or unable to fulfil their duties.
Finally, you could appoint someone under a Power of Attorney to apply for the Grant of Probate and handle the task of administering the estate. This Power of Attorney could be revoked at any time.
How We Can Help
Acting as an Executor carries significant legal and financial responsibilities, and it is important that you are confident in acting in this role. For tailored legal assistance in acting as an Executor, please contact Naomi Dyer on 01258 442423 or email naomi.dyer@blanchardsbailey.co.uk
You can also visit our Wills, Probate and Estate Planning webpage for more information.